For each of the sets of cash flows, and using the value you derived at a 5%, do the following

1. Multiply each cash flow by the time period associated with the cash flow. For example for the first set of cash flow you would:
   1. 30 * 1
   2. 30 * 2
   3. 30 * 3
   4. 30 * 4
   5. 30 * 5
   6. 1030 * 6

2. Divide each product you just calculated by (1.05)^time
   1. 30 / 1.05
   2. 60 / 1.1025
   3. 90 / 1.15762
   4. 120 / 1.21551
   5. 150 / 1.27628
   6. 6180 / 1.34010

3. Add the numbers you just calculated 4988.602954

4. Divide that sum by whatever you got in part A for the first set of cash flows using the 5% rate 5.552228552

5. Repeat these steps for the remaining sets of cash flows limiting your analysis to the 5% rate for present value.

6. Discuss what you observe in Part A. What do you observe in Part B?

1) 2) 6 10 Nper PMT FV 30 1000 Nper PMT FV 30 1000 Present value at 2% Present value at 5% Present value at 9% 1056.01 898.49 730.84 Present value at 2% 1089.83 Present value at 5% 845.57 Present value at 9% 614.94 3) 4) 6 10 Nper PMT FV 50 Nper PMT FV 50 1000 1000 Present value at 2% Present value at 5% Present value at 9% 1168.04 1000.00 820.56 Present value at 2% 1269.48 Present value at 5% 1000.00 Present value at 9% 743.29 5 5) 6) 6 10 Nper PMT FV 80 Nper PMT FV 80 1000 1000 Present value at 2% Present value at 5% Present value at 9% 1336.09 1152.27 955.14 Present value at 2% 1538.96 Present value at 5% 1231.65 Present value at 9% 935.82